NASBA 2014 ANNUAL MEETING

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1 NASBA 2014 ANNUAL MEETING Jerry E Trapnell, Special Advisor to the President/CEO AACSB Jan R Williams, Dean and Professor Emeritus, University of Tennessee 1

2 Our Focus AACSB Interna-onal Accredita-on can assist State Boards of Accountancy in reviewing the educa-onal background of candidates to sit for the CPA Examina-on 2

3 Outline Types of accreditation AACSB accreditation standards CPA examination data on candidates and results linked to AACSB accreditation status Current status of recognition of AACSB accreditation Summary 3

4 The Accreditation Process A mission-driven, quality assurance process ensuring key standards for faculty, curricula, resources, etc are met Based on peer review Includes an extensive self-study and assessment Focus on mission achievement supported by continuous improvement demonstrated by effective processes, procedures, and outcomes AACSB uniquely focuses on innovation, impact, and engagement as attributes of quality 4

5 NASBA Model Rules 5(c) Recognition of Accreditation Level 1: Most comprehensive, optional review at the accounting program level (eg, AACSB Separate Accounting Accreditation) Level 2: Most comprehensive review of the business school including the accounting academic unit, but the accounting program is not separately accredited (eg AACSB Business School Accreditation) Level 3: Institution is accredited and is a prerequisite for Level 1 and 2 accreditation Level 3 may be held without Level 1 or 2 accreditation (eg, SACS, HLC, etc) 5

6 NASBA Levels of Accreditation Level 1: Comprehensive review of the accoun/ng program, business school, & ins/tu/on Level 2: Comprehensive review of the business school & ins/tu/on Level 3: Review at the ins/tu/onal level only AACSB Separate Accoun/ng Accredita/on AACSB Business School Accredita/on Ins/tu/onal Accredita/on- No AACSB Accredita/on X X X X X X 6

7 Level 3: Institutional Accreditation Focus of Institutional Accreditation: Institutional mission, governance, and administration Institutional effectiveness Review of portfolio of degrees (undergraduate and graduate) for alignment with mission Total faculty resources, degrees, other experiences Library and other learning resources Student affairs and resources Financial and physical resources 7

8 Level 2: Professional-Specialized Accreditation of a Business School Focus of AACSB Business School Accreditation Standards: Strategic management and innovation (3 stds) Students, faculty, and professional staff (4 stds) Learning and teaching (5 stds) Academic and Professional Engagement (3 stds) Reviews occur every 5 years and includes all business programs in accounting, finance, management, marketing, etc 8

9 Level 1: Professional-Specialized Accreditation of an Accounting Academic Unit AACSB review of a Department/School of Accountancy (every 5 years) focuses on: Accounting academic unit strategic management and innovation (mission, strategic plan, and accountability) (3 stds) Accounting students, faculty, and professional staff (quality of students, sufficiency of faculty and professional staff) (1 std) Accounting learning and teaching (accounting curricula content & management) (3 stds) Academic and professional Engagement ( accounting students and faculty) (2 stds) 9

10 Areas of Special Emphasis for Accounting Reviews Cer-fica-on and licensure in mission Impact of faculty on business and prac-ce Con-nuous improvement Prepara-on of accoun-ng students in technology and data analy-cs Professional qualifica-ons, cer-fica-on, and experience of faculty Professional engagement of faculty with business/ prac-ce 10

11 An Example of AACSB s General Skill Areas for Curricula Content and their linkage to AICPA Skill Specifica-on Outline Source: St John s University WriRen Communica/on Skill Specifica/on Outline (AICPA) Apply knowledge of professional standards and laws, as well as legal, ethical, and regulatory issues (under Complex Problem Solving and Judgment) Analysis, Complex Problem Solving and Judgment, Decision Making Applica/on of Technology Develop detailed work plans, schedule tasks and mee/ngs, and delegate assignments and tasks(under Organiza/on, Efficiency, and Effec/veness) Exchange technical informa/on and ideas with coworkers and other professionals to meet goals of job assignment (Under WriRen Communica/on) Decision Making, Complex Problem Solving and Judgment Research, Complex Problem Solving and Judgment AACSB Standard #9 General Skill Areas WriRen and Oral Communica/on Ethical Understanding and Reasoning Analy/cal Thinking Informa/on Technology Interpersonal Rela/ons and Teamwork Diverse and Mul/cultural Work Environments Reflec/ve Thinking Applica/on of Knowledge 11

12 CPA Exam Results and AACSB Accreditation 12

13 2, Out- of- State Address 13,314 International Address 8, Exam Statistics % of Candidates In- State Address 766% Out- of- State Address 141% International Address 93% Degree Type Candidate Count Bachelor's Degree 66,436 Advanced Degree 13,380 Enrolled/Other 14,338 % of Candidates Bachelor's Degree 706% Advanced Degree 142% Enrolled/Other 152% Male Female Not Reported ,263 45,969 Average Age , Candidat In- Sta Out- o Intern % of Can In- Sta Out- o Intern Candidat Bache Advan Enroll % of Can Bache Advan Enroll 13

14 AACSB Program Graduates AACSB Graduates represent a significant number of test takers (68%) and an even higher percentage of those passing all 4 parts (75%) Influence of AACSB programs increases annually 14

15 AACSB Program Graduates AACSB Graduates significantly outperform graduates of other ins-tu-ons 15

16 Board Exam Requirements 32 Boards allow fewer than 150 hrs to sit; 13 Boards require 150 hrs w/i a short -me azer applica-on (COE States) 9 Boards currently have a strict 150 hr requirement to sit 16

17 State/Territory Boards Recognizing Level 1 and 2 Forms of AACSB Accreditation Alabama Arkansas Guam Idaho Illinois Iowa Massachusetts Minnesota Nebraska New Jersey New Mexico New York Commonwealth of the Northern Mariana Islands Rhode Island Utah Wisconsin Wyoming 17

18 Summary Level 1: highest level of quality assurance that CPA exam educational requirements for accounting content are met Level 2: highest level of quality assurance that CPA exam requirements for business content are met Level 3: provides general quality assurance, but does not specifically address the quality of business and accounting programs Level 1 and 2 AACSB accredited accounting programs and business schools, respectively, provide more that 65% of CPA exam candidates Relying on Level 1 and Level 2 AACSB accreditation has the potential for reducing administrative review of such candidates 18

19 Levels of Curricula Quality Assurance Curriculum Components Reviewed General Education Business Curricula Content Accounting Curricula Content Level 1: AACSB Business & Accounting Accreditation X X X Level 2: AACSB Business Accreditation X X Level 3: No AACSB Accreditation X 19

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